West Side Development Site Trades for $43M
Elad Group has acquired the 20,030-square-foot vacant lot at 505-513 West 43rd Street from Rhode Island-based Magna Hospitality Group for $43 million, according to city property records. Robert Indeglia, the president and chief executive officer of Magna Hospitality, confirmed the sale in an email to Commercial Observer.
As previously reported, the site hit the market last summer with an asking price of $300 per buildable square foot, or nearly $50 million. Located between 10th and 11th Avenues, the lot can accommodate 160,664 square feet of zoning floor area and 190 residential units.
Development potential is complicated by the lot’s location above an active Amtrak rail line. As a result, potential development will require two special permits, to be obtained through the city’s Uniform Land Use Review Procedure, Andrew Scandalios, a senior managing director at HFF who marketed the site for sale, told CO last year.
“You’re not going to have a basement,” Mr. Scandalios said. “All of your amenities have to be above grade, which does take away from some floor area which would be used for apartments.”
Elad Group did not immediately return requests seeking comment. HFF declined to comment on the transaction.